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Slate has a weirdly interesting article on what happens when insurance agents decide that a piece of art is no longer art:

To give a brief explanation of art that is no longer art: Sometimes
the cost of restoring a work of art exceeds the value of the work, in
which case the insurer declares a total loss, and the work is declared
no longer art—that is, of no market value. The damage can range from
obvious to subtle—from a ripped painting or shattered sculpture to a
wrinkle in a photographic print, or mold damage which can’t be seen at
all. As it wouldn't do to send the not-artwork to the crematorium—the
work might be of scholarly value, or might one day be worth repairing,
or might one day be more easily repaired—the work is stored, not dead,
but in a state of indefinite coma. The Salvage Art Institute, Elka's
curatorial brainchild, collects and exhibits not-art.